2) Under what conditions will the public sector union choose to offer a wage concession
as a strategy for blocking the private sector from producing the publicly funded good?
However, in the early 1980's, a number of companies added alternate pay systems in exchange for wage concession
in union contracts.
Under the CD model, a worker's current wage demand internalizes a downward offset (wage concession
) for each favorable aspect of pension coverage, and an upward offset (wage demand increment) for each unfavorable aspect of this coverage.
The manager has been able to maintain employee morale despite a 22% wage concession
in 1984, and upcoming concessions that Lucky, Eagle's corporate parent, has requested this year.
Hoffa called it "a very difficult vote for our members." YRC officials had threatened bankruptcy filing had the wage concession
If the Teamsters ratify continuation of the wage concession
package, YRC said its improved financial picture will allow the company to increase its investment in new tractors, trailers, technology, and the training and developing of its employees." But that promise came with a subtle warning from the company.
Using that same calculus, ABF stands to save approximately $16.5 million annually from its 7 percent wage concession
covering its 7,500 Teamsters.
FITCHBURG - The city's firefighters have agreed to a 3 percent wage concession
that will prevent layoffs and maintain the same number of engine companies that operated in fiscal 2009.
As is clear from the table, the growth rate of employment and stock prices over the three-year period preceding the current settlement has a significant impact on the terms of the current settlement, with above-average growth in employment and stock prices associated with a lower probability of a union wage concession
. Note that the growth rate of sales is not a strong predictor of the wage settlement outcome.
ABF had sued the Teamsters in order to obtain concessions similar to those won by its chief unionized rival YRC Worldwide, which is operating with a 15 percent wage concession
Wong had estimated a trash fee would generate $800,000, the same that a 3 percent wage concession
from all city unions would realize.
Wolfe said that while a wage concession
represents a significant reduction in YRCW's annual expenses, it's likely to increase the risk of further price competition and potential further service-related tonnage declines as a result of continued poor employee morale.